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Withdrawal of Rs 2,000 notes statutory exercise not demonetisation: RBI tells Delhi HC

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The withdrawal of Rs 2,000 banknotes is a statutory exercise, not demonetisation, the Reserve Bank of India (RBI) told the Delhi High Court on Tuesday.

The high court was hearing a petition challenging the decision by the RBI and SBI that enables the exchange of Rs 2,000 notes without the requirement of an identity proof. The plea filed by Advocate Ashwini Kumar Upadhyay said the decision was arbitrary and against the laws enacted to curb corruption.

Responding to the plea, the RBI said the decision to enable the exchange of Rs 2,000 notes was taken for operational convenience as the withdrawal is not demonetisation but merely a “statutory exercise.”

In his plea, advocate Upadhyay said he wasn’t challenging the decision withdraw the Rs 2000 notes but the decision to exchange the said denomination without requiring any slip or identity proof. The petition argued that the exchange of currency should only be allowed through bank accounts linked with Aadhaar.

It claimed that the current arrangement would only enable mafia and gangsters like “Atiq Ahmed’s henchmen” and Maoists while arguing that today almost every poor person has a Jan Dhan account and BPL persons are also connected to bank accounts.

A Delhi HC bench of Chief Justice Satish Chandra Sharma and Justice Subramanium Prasad said an appropriate order will be passed on the plea.

Advocate Upadhyay claimed in his public interest litigation (PIL) that the notifications by the RBI and the State Bank of India (SBI) that enable the exchange of Rs 2000 notes without requiring a requisition slip and identity proof were arbitrary, irrational and offend Articles 14 of the Indian Constitution.

The PIL claimed that cash transaction in in high value currency is the main source of corruption and used for illegal activities like terrorism, naxalism, separatism, radicalism, gambling, smuggling, money laundering, kidnapping, extortion, bribing and dowry, etc. and a large amount of the currency has reached either in individual’s locker or has “been hoarded by the separatists, terrorists, Maoists, drug smugglers, mining mafias & corrupt people”.

RBI counsel, Senior advocate Parag P Tripathi argued that the emphasised that the court cannot interfere in such matters and the decision was taken to allow exchange of the Rs 2000 currency note for “operational convenience” as the said banknote is not commonly used and other denominations continue to meet currency requirements.

Advocate Tripathi said that no points mentioned by the petitioner impinge or deal with constitutional issues and as such the court cannot interfere.

On May 19, the RBI had announced withdrawal of Rs 2,000 currency notes from circulation, and said existing notes in circulation can either be deposited in bank accounts or exchanged by September 30.

However, the 2,000 notes will continue to be legal tender, it had said, adding that the notes can be exchanged for other denominations from any bank starting May 23, albeit with a limit of Rs. 20,000 per transaction.

Both the RBI and the SBI issued notifications stating that no requisition slip or identity proof is required for exchanging the Rs 2,000 notes.

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Air India drug test row: 2 more pilots fail preliminary screening

Two more Air India pilots have not cleared preliminary drug tests and have been de-rostered while their final test results are awaited, sources said.

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Two more Air India pilots have not cleared the preliminary stage of drug testing ordered by the airline following the Phuket-Delhi flight incident. Their final test results are awaited, and both pilots have been de-rostered in the meantime, sources said.

The airline had directed its pilots to undergo drug testing as part of a new standard operating procedure after the pilot-in-command of the Phuket-Delhi flight failed two urine tests conducted after the aircraft landed. Marijuana was detected in his system.

More than 300 Air India pilots have undergone the testing process so far. Sources said final drug-test results generally take around 24 to 48 hours.

A cabin crew member on the Phuket-Delhi flight was also believed to have filed a complaint alleging that the pilot had previously smoked “pot”.

What happened on the Phuket-Delhi flight

The incident involved an Airbus A320neo that experienced a sudden drop of around 300 feet. The aircraft’s system data indicated a simultaneous loss of control of key flight surfaces, including the elevators and ailerons, for about four seconds.

The spoilers also lost control following the same hydraulic failure.

During the four-second period, the aircraft’s elevators and ailerons moved without pilot commands after multiple failures involving the jet’s three hydraulic systems.

The elevators control the aircraft’s pitch, while ailerons help control its roll. Spoilers reduce lift and increase drag, including during descent and landing.

Air India’s earlier statement on drug testing

The incident was initially reported as being linked to turbulence, before aircraft system data provided further information about what had occurred.

Air India had said it conducts regular drug testing of crew members in accordance with civil aviation regulations. The airline said the testing was part of its existing compliance process and was not initiated specifically because of the Phuket-Delhi flight incident.

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Assam floods: Nearly 97,000 families receive Rs. 15,000 aid, more relief in pipeline

Assam has provided Rs. 15,000 each to 96,842 flood-affected families, while a detailed survey is underway to assess damage and determine further compensation.

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Assam floods

Assam has provided one-time financial assistance of Rs. 15,000 each to 96,842 flood-affected families, Chief Minister Himanta Biswa Sarma said on Monday as the state began a detailed assessment of damage caused by the floods.

Sarma announced the figures at a press conference at the Media Hall of Lok Sewa Bhawan in Dispur after financial assistance was released to another 31,991 families across four affected districts.

The state government has spent Rs. 146.26 crore on the assistance distributed so far. Sarma said the beneficiary list was still being prepared and around 3,000 additional families could receive assistance in the next phase.

“We want the affected families to have some cash in hand when they return home after the flood. This assistance is meant to help them settle back and meet their immediate needs,” Sarma said.

Assam begins detailed flood damage assessment

The state government has now shifted its focus to assessing the extent of the damage caused by the floods. A rapid survey is being conducted across affected areas with the assistance of 1,144 teachers.

Preliminary findings show that 26,681 houses and 18,887 cattle sheds have been damaged. Losses involving handloom-related raw materials have also been reported.

The assessment has so far covered around 5.98 lakh pets and domestic animals. Meanwhile, the survey of agricultural and fisheries losses is still underway.

Officials have identified 99,256 farmers who have suffered crop or other agriculture-related losses.

Sarma said the first phase of the survey is expected to be completed by August 28 or 29. The findings will subsequently be uploaded to a web portal, where affected residents will be able to check the information recorded against their names.

The portal will also allow people to raise objections if they have been excluded from the beneficiary list or if the damage recorded does not reflect their actual losses.

Second verification round planned in September

The government plans to begin a second round of verification around September 1 or 2. The process is expected to continue until September 10 or 11, with the revised list likely to be made public around September 15 or 16.

Sarma said unresolved complaints could lead to another field verification.

“If there is a complaint for the third consecutive time, we are ready to conduct a third survey. Our aim is to complete the survey and provide financial assistance by October 9 or 10,” he said.

If another verification round is not required, the government expects to complete the process by the end of September, he added.

The damage recorded on the assessment portal has so far been estimated at around Rs. 480 crore for houses and other properties. The figure, however, is expected to change as the survey progresses.

Rehabilitation plans for worst-hit areas

The Assam government is also considering longer-term rehabilitation measures for some of the worst-affected areas in Sivasagar and Charaideo.

Sarma said the state government had discussed the possibility of providing houses under the Pradhan Mantri Awas Yojana to eligible families in the two districts with Prime Minister Narendra Modi.

“We are trying not just to provide immediate relief but to give a strong and lasting solution to the affected people,” Sarma said.

Restoration work has begun at several damaged schools, roads, naamghars and health facilities. Health and veterinary teams are also continuing camps in flood-affected areas.

Ex-gratia, loan moratorium and insurance claims

The government is separately working on ex-gratia payments of Rs. 9 lakh to the next of kin of people who died in the floods, Sarma said.

On financial relief for borrowers, he said 1,712 affected people had so far applied for a moratorium on bank loans. Eligible borrowers have been asked to submit their applications by August 31.

“There are still many people who have not applied for the moratorium. I appeal to all affected people who are eligible to apply before August 31,” he said.

Insurance claims are also being processed. According to the Chief Minister, 1,598 claims have been received so far, of which 170 have already been settled and the payments released.

Sarma urged flood-affected people with insurance coverage to approach their respective insurance companies and submit claims for losses suffered during the floods.

The immediate priority, according to the Chief Minister, is to complete the damage assessment, give affected people an opportunity to challenge the findings and finish the compensation process for eligible families.

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Rahul Gandhi asks Hemant Soren to meet protesting students

Rahul Gandhi has urged Jharkhand Chief Minister Hemant Soren to personally meet students protesting alleged irregularities in recruitment examinations.

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Rahul Gandhi

Congress MP and Leader of Opposition in the Lok Sabha Rahul Gandhi has urged Jharkhand Chief Minister Hemant Soren to personally meet students protesting alleged irregularities in the state’s recruitment examinations.

In a letter dated August 14, Mr Gandhi said the agitation had entered its 24th day by Monday and described the protests as peaceful, while calling the students’ demands legitimate.

He said the Congress supports the right to peaceful protest and has backed students raising concerns over alleged paper leaks and irregularities in the education system.

Mr Gandhi also acknowledged that the Jharkhand government had initiated a dialogue with the protesting students.

“I believe that there is also agreement on several demands raised by the students. However, the protests continue, and some students remain on an indefinite hunger strike,” he said.

The Congress leader urged Mr Soren to meet representatives of the protesting students, saying such a step would reinforce the government’s commitment to resolving their remaining concerns.

Jharkhand protesters had appealed to Rahul Gandhi

The students protesting over the examination issue had also appealed to Rahul Gandhi on Independence Day to withdraw support from the Jharkhand Mukti Morcha-led coalition if the Chief Minister did not respond to their concerns.

The protesters said that although Mr Gandhi had expressed support for their cause, no concrete action had followed.

They have also sought Mr Soren’s resignation and announced plans to protest outside his residence on August 20.

The agitation has focused on alleged irregularities in recruitment examinations conducted in Jharkhand. Some protesters, including students on an indefinite hunger strike, have continued their demonstration despite talks between representatives of the government and the students.

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